UK Trade Department Growth Warnings Intensify Amid Looming Trump Trade War

By: Swarnalata

Published on: Mar 18, 2025

UK Trade Department Urged to Reform Amid Trump’s Trade War Threats

The UK’s Department for Business and Trade (DBT) is under pressure to overhaul its spending transparency and cross-government collaboration practices, as fears mount over slowing economic growth and potential disruptions from Donald Trump’s escalating trade policies. A damning report by the National Audit Office (NAO) highlights critical gaps in the DBT’s oversight, warning that failure to act could stifle the UK’s economic resilience.

Key Findings from the National Audit Office Report

The NAO’s evaluation of the DBT’s 2025 Industrial Strategy reveals three major concerns:

Lack of Spending Transparency: The department lacks a comprehensive view of government-wide business support expenditures, undermining strategic decision-making.

Weak Cross-Government Coordination: The DBT struggles to align policies with other departments, diluting its influence on national trade strategy.

Unclear Evaluation Metrics: Limited data on the effectiveness of taxpayer-funded sector interventions hampers future planning.

Sir Geoffrey Clifton-Brown, Chair of the Public Accounts Committee, criticized the DBT’s fragmented approach: “Without a unified voice for business and clear spending oversight, the UK risks falling behind in a volatile global market.”

UK’s 2024 GDP Growth: A Narrow Escape from Recession

Recent Office for National Statistics (ONS) data shows the UK economy grew by 0.1% in Q4 2024, narrowly avoiding a recession. While this uptick offers short-term relief, experts warn that Trump’s proposed tariffs on UK imports could destabilize progress.

Trump’s Tariff Threats: Implications for UK Trade

Former US President Donald Trump has reignited trade tensions, hinting at reciprocal tariffs targeting UK exports. Such measures could disrupt key sectors like automotive, aerospace, and agriculture, compounding existing challenges for British businesses.

A DBT spokesperson defended the government’s strategy: “Our Industrial Strategy prioritizes high-growth sectors, ensuring value for taxpayers and long-term prosperity.”

The Path Forward: Transparency and Collaboration

To mitigate risks, the NAO urges the DBT to:

Create a centralized dashboard tracking business support spending.

Strengthen partnerships with other Whitehall departments.

Publish clear metrics for evaluating sector-specific interventions.

Why This Matters for the UK Economy

With growth at a precarious 0.1%, the UK cannot afford bureaucratic inefficiencies or external trade shocks. Proactive reforms and a cohesive industrial strategy are vital to safeguarding jobs, investment, and global competitiveness.